A criminological study into the effects of corruption on foreign companies operating within Indonesia in the post Soeharto ‘New Order’ era and counter-measures implemented by them to mitigate the effects of this criminal activity

Slater, Mark (2009) A criminological study into the effects of corruption on foreign companies operating within Indonesia in the post Soeharto ‘New Order’ era and counter-measures implemented by them to mitigate the effects of this criminal activity. MSc dissertation, University of Portsmouth.

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    Abstract

    The globalisation of industry around the world has not been without its challenges for the companies who choose to conduct their business outside of their own borders. Companies are attracted by a plentiful supply of readily available cheap labour or rich mineral and hydrocarbon deposits. Operating abroad is not without its problems and companies need to be well prepared for the rigours of business in developing countries. One major issue when operating abroad is that of corruption, as large global companies are sometimes seen as easy prey for unscrupulous officials to make money. Indonesia is one such country with a history of corrupt activity. Therefore the intention of this study was to conduct a criminological study into the effects of corruption on foreign companies operating within Indonesia in the post Soeharto ‘New Order’ era and to identify some of the counter-measures implemented by them to mitigate the effects of this criminal activity. This was to be carried out in order to enhance the understanding of the present state of criminology in this field and to understand international company’s methodology in counteracting the criminal threat of corruption. During the course of this research it was found that the fall of President Soeharto’s New Order era and decentralisation of power in the country has made it even more difficult for companies to operate in Indonesia due to the ‘fracturing’ of corrupt activities and the apparent lack of control of corruption now endemic in the country. Furthermore it was found that the threat of criminal action being taken against companies in Indonesia is increasing and it is becoming progressively difficult to operate within the country. Action is being taken by the Indonesian Government to curtail corrupt activities and there is a raft of legislation to address the issue. However, despite all the good intentions the corruption persists due to lack of enforcement of the aforementioned legislation, poor funding, and lack of expenditure on enforcing the rules. Corrupt activities are no longer being hidden and transparency is on the increase. This is due in part to increased freedom of the press which is highlighting the corruption problem.

    Item Type: Dissertation
    Departments/Research Groups: Faculty of Humanities and Social Sciences > Institute of Criminal Justice Studies
    Depositing User: Jane Polwin
    Date Deposited: 20 Jan 2011 12:48
    Last Modified: 28 Jan 2015 11:15
    URI: http://eprints.port.ac.uk/id/eprint/730

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